"The Community Reinvestment Act"
No. CRA is a 1977 Carter monstrosity.
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Fannie Mae Eases Credit To Aid Mortgage Lending
Published: September 30, 1999
In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
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Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.
''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''
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New York Times
Nobody saw it coming! We weren't warned! If was deregulation by the Bush Administration!
Just goes to show, democrats are socialists and will get their socialism one way or the other. Sadly, the Pubbies lacked the cajones to expose the bastards and fight for US when they had the chance. It may now be too late to fix the broken Republic.